Capital Gains Tax calculator Kenya 2026: worked examples
Capital Gains Tax (CGT) on property in Kenya is 15 percent of the gain on disposal. Calculation depends on adjusted cost base, allowable improvements and sale costs. Here are the honest 2026 worked examples for sellers in Nairobi.
Capital Gains Tax (CGT) on property in Kenya is 15 percent of the gain on disposal. Calculation depends on adjusted cost base, allowable improvements and sale costs. Here are the honest 2026 worked examples for sellers in Nairobi.
The formula
Gain = Sale Price - Adjusted Cost Base - Disposal Costs
CGT = 15 percent x Gain
Adjusted cost base components
- Original purchase price
- Stamp duty paid on purchase
- Legal fees on purchase
- Capital improvements (proven and documented)
- Other allowable acquisition costs
Allowable disposal costs
- Estate agent commission
- Legal fees on sale
- Marketing costs (if applicable)
- Valuation fees
Worked examples
Example 1: Apartment held 5 years with capital gain
- Purchase price 2021: KES 12,000,000
- Stamp duty paid: KES 480,000
- Purchase legal fees: KES 80,000
- Capital improvements: KES 400,000
- Adjusted cost base: KES 12,960,000
- Sale 2026: KES 18,500,000
- Estate agent commission 3 percent: KES 555,000
- Sale legal fees: KES 100,000
- Disposal costs: KES 655,000
- Gain: KES 18,500,000 - KES 12,960,000 - KES 655,000 = KES 4,885,000
- CGT at 15 percent: KES 732,750
Example 2: Standalone house held 12 years
- Purchase price 2014: KES 25,000,000
- Stamp duty paid: KES 1,000,000
- Purchase legal fees: KES 150,000
- Capital improvements over years: KES 4,000,000
- Adjusted cost base: KES 30,150,000
- Sale 2026: KES 65,000,000
- Estate agent commission 3 percent: KES 1,950,000
- Sale legal fees: KES 200,000
- Disposal costs: KES 2,150,000
- Gain: KES 65,000,000 - KES 30,150,000 - KES 2,150,000 = KES 32,700,000
- CGT at 15 percent: KES 4,905,000
Exemptions and reliefs
- Transfer between spouses (not a taxable disposal)
- Transfer to a trust for the benefit of a spouse or family member (subject to specific rules)
- Compulsory acquisition by government
- Some restructuring transactions (specific rules apply)
When CGT is paid
- Paid by the seller before completion of transfer
- KRA must clear before lands registry will register the transfer
- Paid via iTax
Most Kenyan CGT overpayments are not made by sellers who pay too much; they are made by sellers who could not document the adjusted cost base.
How Goldstay handles it
For seller clients we coordinate with tax advisors on CGT computation. Read also our pieces on sellers guide Nairobi 2026 and property taxes Kenya 2026.
The Goldstay Legal Desk covers Kenyan and Ghanaian property law, title diligence, sale agreements, stamp duty, succession and the regulatory environment that property owners and investors encounter. Pieces are written in collaboration with our advocate partners.
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